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Now with the reserves almost depleted and the building division running an annual deficit, the enterprise fund format works a disadvantage to the building division. One reason to consider converting the building division to a general fund agency is that building does perform some general government functions. These include hazardous structure and minimum housing code implementation activities as well as other functions. More important, however, is the fact that, even if the building division were switched from enterprise account to the general fund, the problem of expenses exceeding revenues would not go away. Instead, any revenue shortfall would be paid by taxpayers rather than the users of the service. Whether building is in the general fund or is an enterprise account, the focus will be on the bottom line, with the objective being to get the building division to operate in the black. • Do Nothing In this case, do nothing is not a viable alternative. With no action, the building division's reserves will be depleted in early FY 93-94, and there will be no funds to continue operations. ASSESSMENT While staff was still developing and analyzing alternatives, several builders contacted the county administrator with concerns regarding the building division's budgetary situation. The administrator responded by inviting the builders' representatives to meet with staff to consider alternatives to address the building division's funding issues. In a series of meetings over several weeks, representatives from the Treasure Coast Builders Association (TCBA) and the Associated General Contractors (AGC) met with staff, reviewed the background data and projections, discussed the issues, evaluated alternatives, and developed a proposal. Basically, the TCBA and AGC agreed with staff's assessment of the problem and staff's position that some action was needed. While the builders also generally agreed with staff's identification of alternatives, the builders did suggest variations to some of the alternatives and recommended additional actions to be undertaken. In assessing the alternatives, there were three major concerns. One was to avoid major fee increases that would adversely affect builders, especially builders of moderate cost residences. Another concern was to maintain the building division's level of service in terms of both timing and quality of work. The final concern was to solve the building division funding problem. With these concerns in mind, the group agreed that two actions were warranted. These would involve instituting a competency card annual renewal fee and increasing fees for miscellaneous and sub -permits. The group felt that the building division does not get sufficient revenue to cover its costs for those activities. Along with the two actions proposed, the builders recommended that staff institute several actions which could reduce expenses over time. These involve increasing automation (institute voice actuated inspection system), cross certifying inspectors, and having inspectors do multiple inspections. 43 MAR 2 3 199